Preparation key to avoiding Christmas debt
on: December 30, 2008, 4:46 am
Release Author: Thinkmoney.com
Release Summary: Financial solutions company Think Money have
advised consumers to avoid getting into debt wherever possible
this Christmas, with the recession threatening to put further
pressure on the finances of British households in 2009.
Release Body: Financial solutions company Think Money
have warned consumers to be careful over the amount of debt they
incur over the festive season, in order to avoid potential debt
problems in the midst of an economic recession.
have also advised those consumers who do rely on credit to act
early and tackle any debts before they have the chance to grow,
and to be selective over the types of credit used in order to
prevent the debts from becoming unmanageable.
many families in the UK, including those who are usually comfortable
financially, the Christmas season has become associated with debt.
The tradition of spending large amounts of money on food and gifts
has meant that large numbers of households fall into debt every
year, even if it means spending a large part of the following
year repaying those debts.
a survey taken earlier this year by Savebuckets.com suggested
that one in four Christmas borrowers were still repaying their
Christmas debts in the following October – nine months after
the money was originally spent.
debt expert for financial solutions company Think Money
commented: “In today’s society, many households
actually expect to get into debt in order to get through the Christmas
season – which can put them at risk of debt problems in
the future. It’s much safer to focus more on how to avoid
falling into debt – and with the right preparation and attitude,
it is very much possible to do that.”
spokesperson added that staying out of debt over the Christmas
period does not necessarily have to mean cutting back on costs.
“The households who are best prepared for the Christmas
period are those who have thought about it long in advance and
have been saving throughout the year. By saving just a relatively
small amount each month, it’s quite possible to save enough
to cover all the costs involved, without having to compromise.
it seems that it is currently more common to pay with credit in
the run-up to Christmas. This may have been fuelled by the relatively
easy access to credit of the past few years, although due to the
credit crunch, this may be a little more difficult this year.”
spokesperson also said that the type of credit used can be crucial
to consumers’ ability to repay the debt. “For those
consumers who do rely on credit over the Christmas period, choosing
the right form of credit is a simple step that can make all the
example, it’s generally unadvisable to make large purchases
on credit cards unless the buyer is absolutely sure they will
be able to repay the debt in a short space of time. The APR on
credit cards is typically very high, which means the debt can
grow very quickly unless it is repaid promptly.
Think Money spokesperson added that anyone finding
themselves struggling with debt should seek debt advice straight
away. “There are a number of debt solutions that can help
to minimise outgoings and/or help to reduce debts, such as debt
consolidation or an IVA
(Individual Voluntary Arrangement). We urge anyone in serious
debt to seek professional debt
advice as soon as possible.”
Details: Think Money Limited
South Langworthy Road